Elanco moving HQ to near downtown Indianapolis from Greenfield (lease, homes)

[indy_317]

Here is a link to the story: ELANCO LEAVING: City’s leading business will build new HQ in Indianapolis

Elanco is moving their global HQ in Greenfield to the old GM stamping plant lot near downtown Indianapolis. I personally don't view these job transfers as a benefit to downtown like some do. Most people view the benefit of workers as mostly those who spend their money eating lunch out and doing some local shopping. Sure, there will be some benefit, but the land is pretty far from the downtown core.

The biggest reason is because the state is basically paying for the entire project, with tax breaks. The company says it will costs $100M to build their new complex. However, the state is almost chipping in that much with various tax incentives. Thankfully the incentives come with conditions, but the specifics aren't really discussed. From what I've read on other forums, this may have been the typical "We might be leaving." politics that get started to get the government to start forking over money. Who knows for sure.

I've said numerous times that while the trend is urbanization, younger people today won't put up with longer commutes, no matter how better traffic is in mid-sized metros. If a company wants to maximize their potential recruitment base, basing near an interstate inside or along I-465 is a good move. Being in a far off suburb like Greenfield means a lot of far south, far/near west-side, and far north sides of town workers might not want to make the long haul to Greenfield.

It will be interesting to see how the area redevelops in the coming years. I know the homes in the area aren't that great and it is mostly a lower income area. There is still a lot of industrial in that area and a bunch of homeless live along the railroad tracks and the river levees. The train tracks that run along the north end of the property could possibly be used for a future rail line between downtown and the airport.

Overall I'm glad this property is being used. I'm not really happy with the taxpayers basically shelling out $100M over who knows how many years. And I'm sad that Greenfield is taking a huge hit.

Also, I really want to know if we will return to a work at a place environment. I know a lot of work-from-home types really enjoy that benefit. Normally I'd be surprised a company would make such an investment given we really don't know what the future workplace looks like. I guess when the state basically promises to pay for everything it becomes much easier to take that risk.

[Berteau]

Why would the state give tax breaks for an in state move? Either way tax payers aren’t paying anything. They are tax breaks which means the company is paying the state or city less. Everyone gets tax breaks on their tax returns every year. They aren’t being paid money by anyone.

I’m guessing a lot of those workers will move to the metro and it will help recruiting for better workers in the future.

[indy_317]

Originally Posted by Berteau

Why would the state give tax breaks for an in state move? Either way tax payers aren’t paying anything. They are tax breaks which means the company is paying the state or city less. Everyone gets tax breaks on their tax returns every year. They aren’t being paid money by anyone.

I’m guessing a lot of those workers will move to the metro and it will help recruiting for better workers in the future.

The question is does every single business and individual get the same level of tax benefits? If not, then that is a problem. I only bring it up because there are many who complain about our lack of pay for teachers, roads in poor shape, etc.. If the government has money, things like that can possibly be fixed. If the gov gives too many companies tax breaks, then at some point in time individuals have to fork over more taxes to keep basic services running.

One reason for the tax breaks was said to be the company was considering moving out-of-state. Who knows if that is true or not, but that is usually what companies do when they want something. The same thing with pro-sports teams. The owners start taking vacations to cities who are looking to land a team when they want the current city/state to pay for a new stadium, get a larger cut of the pie from shared facility revenue, etc..

[sheerbliss]

So is Greenfield now going to have an abandoned office park?

[Berteau]

Originally Posted by sheerbliss

So is Greenfield now going to have an abandoned office park?

Likely until another large company rents it out which is unlikely or they lease out sections of it to smaller companies. With trends how they are that might be a challenge. Or the city could get involved to find a solution.

[indy_317]

Originally Posted by sheerbliss

So is Greenfield now going to have an abandoned office park?

One news report said that the company is going to try to find a tenant. I wouldn't hold my breath. Who knows, they might find someone, somewhere looking to get out of where ever they are at this time.